Correlation Between Artisan Global and Enhanced

Can any of the company-specific risk be diversified away by investing in both Artisan Global and Enhanced at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Artisan Global and Enhanced into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Artisan Global Equity and Enhanced Large Pany, you can compare the effects of market volatilities on Artisan Global and Enhanced and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Artisan Global with a short position of Enhanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Global and Enhanced.

Diversification Opportunities for Artisan Global and Enhanced

-0.34

Correlation Coefficient

Artisan Global  Enhanced

Very good diversification

The 3 months correlation between ARTISAN and Enhanced is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Global Equity and Enhanced Large Pany in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enhanced Large Pany and Artisan Global is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Artisan Global Equity are associated (or correlated) with Enhanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enhanced Large Pany has no effect on the direction of Artisan Global i.e., Artisan Global and Enhanced go up and down completely randomly.

Pair Corralation between Artisan Global and Enhanced

Assuming the 90 days horizon Artisan Global Equity is expected to generate 0.92 times more return on investment than Enhanced. However, Artisan Global Equity is 1.08 times less risky than Enhanced. It trades about 0.16 of its potential returns per unit of risk. Enhanced Large Pany is currently generating about -0.1 per unit of risk. If you would invest  1,948  in Artisan Global Equity on December 24, 2024 and sell it today you would earn a total of  167.00  from holding Artisan Global Equity or generate 8.57% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Artisan Global Equity  vs.  Enhanced Large Pany

Artisan Global Equity

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Artisan Global Equity are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical indicators, Artisan Global may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Enhanced Large Pany

Risk-Adjusted Performance

Very Weak

Over the last 90 days Enhanced Large Pany has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's essential indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with Artisan Global and Enhanced

The main advantage of trading using opposite Artisan Global and Enhanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Global position performs unexpectedly, Enhanced can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Enhanced will offset losses from the drop in Enhanced's long position.

The idea behind Artisan Global Equity and Enhanced Large Pany pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

Check out your portfolio center.

Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.